Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What should be the accounting treatment for security deposit PDC kept with Landlord for the span of the rental agreement of accommodation?

Monthly Closing Accounting Finance
user-image
Question added by Junaid parkar , Senior Accountant , Takenaka - New Doha International Airport (Emiri Terminal and mosque)
Date Posted: 2014/08/11
Upvote (0) Views (6) Followers (2) Answers (2) Report Question
Write an Answer
Register now or log in to answer.
Ahmed Elsayed
by Ahmed Elsayed , Chief Accountant , Jeet Building Contracting LLC

In case the PDC wont be deposited, two control Accounts will be created for such cases

Dr.Intermediate PDC security Deposit Receivable

Cr. Intermediate PDC Security Deposit Payable

AT any point of time these two Accounts should always hold the same closing balance one Dr. & the other Cr. by the total sum of ZERO.

This treatment despite of no Financial effect on records, Its quite useful for the control & tracking purpose.

In case the PDC will get deposited in Bank

Dr. Bank

Cr. Refundable Deposit Payable 

Rameez Khalid
by Rameez Khalid , Senior Accountant , Leverify LLC

Dr. Refundable Deposit

Cr. Bank

Write Your Answer
More Questions Like This